TAIEX ends week higher as technology issues gain

Stocks ended higher yesterday, with overnight gains in US stocks lifting local technology issues.

The TAIEX added 43.43, or 0.7 percent, to 6,056.83. For the week, the index rose 0.2 percent. The index was down by as much as 0.7 percent in intra-day trading.

The futures index rose 1.4 percent to 6,059.

Gainers outnumbered decliners 508 to 276, with 128 stocks unchanged, in trading valued at NT$97.77 billion (US$2.88 billion).

The electronics subindex finished up 1.3 percent, after the NASDAQ composite index rose 0.87 percent overnight to reach its highest point in nearly 22 months.

Investors snapped up shares in Ambit Microsystems Corp (國電) and Hon Hai Precision Industry Co (鴻海精密), after the companies announced a tie-up on Thursday. Hon Hai said that it agreed to buy Ambit Microsystems for NT$36.7 billion (US$1.08 billion) in stock.

Hon Hai gained NT$4, or 2.6 percent, to NT$158, while Ambit surged NT$6, or 6.5 percent, to NT$98.50.

Compal Electronics Inc (仁寶電腦) gained NT$2.50, or 4.9 percent, to NT$54, after saying on Thursday that its sales last month surged 52 percent from a year earlier.

Chi Mei Optoelectronics Corp (奇美電子) advanced NT$2, or 4.8 percent, to NT$43.50. The nation's second-largest maker of flat-panel displays said it expected sales in the fourth quarter to rise a fifth from the previous three months.

MediaTek Inc (聯發科技) added NT$2, or 0.6 percent, to NT$339. The world's largest maker of chips for DVD players said last month's sales rose a third from a year earlier. Sales rose to NT$4 billion from NT$3 billion in October last year. Sales fell from NT$4.3 billion in September.

Taiwan Semiconductor Manu-facturing Co (台積電) ended unchanged at NT$69. The stock has lagged behind the market recently following news of major shareholder Royal Philips Electronics' plan to sell part of its stake in the chipmaker. TSMC said after the market's close that revenue last month rose 33 percent year on year to a record high of NT$20.3 billion.